Thanks for the clarifications. Your "because an RMD is ineligible for rollover, the default tax withholding is 0" statement is interesting. I certainly owe taxes on my RMDs since they are treated as ordinary income, right? Fidelity did not mention what the requirement is to withhold state tax for me. (I need to ask.) It sounds like there won't be one. You are saying my RMD from my IRA at Morgan Stanley is treated differently than the RMD that will be withdrawn from my 401K? In my mind, an RMD is an RMD regardless of the source. That may explain why my Morgan Stanley financial manager is not aware of the IRS mandate (because it does not apply?). What I find odd about the W-4P form is that when completed, all of my entries for steps 1-4 are blank except for step 5, the signature. It provides no information to Fidelity whatsoever. It sure looks like I will need to do estimated tax payments every year to cover this situation which is what I am endeavoring to avoid.
